• The government launched a $127.5 billion Integrated Resource Plan (IRP 2025) to add 105,000 MW of power by 2039 and end the electricity crisis.

• The plan will shift South Africa’s energy mix toward low-carbon sources, reducing reliance on coal for the first time.

• Eskom’s grid performance has improved, with 154 consecutive days without load-shedding since April 2025.

South Africa’s Minister of Electricity and Energy, Kgosientsho Ramokgopa, unveiled the Integrated Resource Plan (IRP) 2025 on October 19, outlining an investment of 2.2 trillion rand ($127.5 billion) to stabilize power supply and revive the economy.

Dr Kgosientsho Ramokgopa, @Kgosientsho_R , Minister of Electricity & Energy, says the Integrated Resource Plan 2025 is a R2.23 trillion investment plan to ensure security of electricity supply for the country. pic.twitter.com/jlIMiP7NXW

— Department of Electricity and Energy (@DOEE_ZA) October 20, 2025

The plan targets the addition of 105,000 megawatts of new capacity by 2039, more than double Eskom’s current installed capacity. It prioritizes a shift toward low-carbon energy, which will surpass coal for the first time in South Africa’s history.

The IRP calls for 11,270 MW of solar, 7,340 MW of wind, 6,000 MW of gas, and 5,200 MW of nuclear power by 2030. It also aims to lift economic growth to 3% of GDP and create thousands of jobs in the construction and industrial sectors.

Minister Ramokgopa said, “No economy can grow if the lights are off,” emphasizing that chronic power cuts have stifled industrial investment and worsened unemployment.

According to the OECD, power outages reduced South Africa’s GDP growth by 1.5 percentage points in 2023, capping it at 0.7%. The organization estimates that blackouts cost the economy 43.5 billion rand ($2.5 billion) between 2007 and 2019.

Investment advisory firm Discovery Alert added that industrial production typically falls by 20% during severe load-shedding periods. The OECD has urged the government to sustain reform momentum, focusing on creating a competitive electricity market, expanding renewable generation, and strengthening transmission networks.

Eskom Recovery and Renewables Expansion

After years of instability and plant failures, Eskom has shown steady improvement since 2024. Between August and September 2025, the utility achieved an energy availability rate of 70%—a level reached over twenty times—compared to below 50% the previous year.

As of October 17, South Africa had completed 154 consecutive days without load-shedding, according to Eskom.

The country continues to advance two flagship programs: the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), launched in 2011, which has approved 122 projects totaling 11,500 MW, with 7,825 MW already reaching financial close; and the Battery Energy Storage Independent Power Producer Procurement Programme (BESIPPPP), designed to integrate large-scale storage and stabilize the grid.

The IRP 2025 arrives as South Africa’s grid begins to stabilize, signaling early success for ongoing reforms. The government now faces the challenge of securing financing and sustaining progress to ensure lasting energy security and economic recovery.

This article was initially published in French by Abdoullah Diop

Adapted in English by Ange Jason Quenum